SRC-MKV S.B. 1316 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1316
77R9260 TBy: Staples
Education
4/24/2001
As Filed


DIGEST AND PURPOSE 

Under current law, the state guarantees a yield of $35 per average daily
attendance for up to twelve cents of Interest and Sinking tax effort to
equalize existing school district facilities bonds under the Existing Debt
Allotment (EDA).  The state guarantees the same amount for up to just over
seven cents under an Instructional Facilities Allotment (IFA).  About
ninety percent of the state's student population resides in districts
eligible for the EDA.  As proposed, S.B. 1316 enhances the EDA by
increasing the twelve cent limit to twenty-nine cents, provides for an
automatic rolling forward of the years covered to include debt payments
that can be certified by a district prior to January 1 of a legislative
year, and adds a prohibition against a district using the same local effort
to earn state assistance under Tier 2 and under the IFA or EDA.  The bill
also equalizes the actual amounts of debt service that will be paid each
year instead of basing coverage on payments in a trigger year. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 42.301, Education Code, to add language to
include access to additional funds for facilities as part of what is
provided to each school district by the guaranteed yield component of the
Foundation School Program.  Changes language relating to an allotment under
this subchapter being used for any legal purpose including capital outlay
and debt service from any legal purpose other than capital outlay or debt
service.  Adds language prohibiting a school district from receiving an
allotment under this subchapter for any tax effort that receives an
allotment under Chapter 46 of this code.   

SECTION 2.  Amends Section 46.005, Education Code, to change a reference
from "the biennium in which the bonds are issued" to "each year of the
biennium." 

SECTION 3.  Amends Section 46.033, Education Code, to provide that bonds,
including bonds issued under Section 45.006, are eligible to be paid with
state and local funds under this chapter if the district certifies to the
commissioner prior to January 1 of the second year of the state fiscal
biennium the amount of payments due on the bonds in each year of the
state's next fiscal biennium.  Deletes language relating to taxes levied to
pay the principal of and interest on the bonds included in the district's
audited debt service collections for the 1998-99 school year. 

SECTION 4.  Amends Section 46.034, Education Code, to prohibit the amount
of state assistance to which a district is entitled from exceeding the
amount to which the district would be entitled at the district's tax rate
for the payment of eligible bonds in the amount certified under Section
46.033(1). Deletes language relating to the payment of eligible bonds for
the fiscal year of the preceding state fiscal biennium.  Makes a conforming
change. 

SECTION 5.  Effective date: September 1, 2001.